Kyndryl Holdings (KD) Expands Broadcom Alliance, Is The Stock Still Undervalued?
Yahoo Finance ·
Kyndryl Holdings (KD) Expands Broadcom Alliance, Is The Stock Still Undervalued? Simply Wall St Thu, September 3, 2026 at 3:06 PM EDT 3 min read KD AVGO Kyndryl Holdings (KD) has expanded its alliance with Broadcom to deliver end-to-end consulting around VMware Cloud Foundation, with a focus on AI-ready private clouds, automation and security for mission-critical enterprise systems. The news comes after a mixed period for Kyndryl Holdings, with the share price at US$13.09 and a 7.83% 90 day share price return. The year to date share price return is down 48.65% and the 1 year total shareholder return is down 59.11%, pointing to some recent momentum but a still weak longer term record. Spot opportunities around Kyndryl Holdings by scanning a curated set of infrastructure and AI enablers through our 55 AI infrastructure stocks . Kyndryl Holdings has bounced in the short term while longer term returns remain weak, which raises the real issue for investors. Has the recent move already captured most of the upside, or does meaningful value still sit ahead of the stock as the valuation section examines next? The most followed valuation narrative puts Kyndryl Holdings' fair value at $14.10 per share, modestly above the last close at $13.09. This frames the current pricing debate around only a small discount and a long list of moving parts in cloud, AI and legacy contracts. The company's focus on expanding AI, data, and cybersecurity services, supported by investments in proprietary initiatives like Kyndryl Bridge and new alliances such as Databricks, is allowing Kyndryl to address rising complexity and security requirements, supporting both higher margins and new revenue streams. Read the complete narrative. Read the complete narrative. Want to see what sits behind that fair value for Kyndryl Holdings? The narrative leans heavily on a mix of flat revenue, rising margins and much faster earnings, all discounted at a specific required return. The interesting part is how much weight it gives to profitability gains rather than top line growth, and how that shapes the multiple it uses a few years out. Result: Fair Value of $14.10 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the Kyndryl Holdings story could be challenged if legacy, lower margin contracts drag on longer than expected or if complex account transitions delay new deal signings. Find out about the key risks to this Kyndryl Holdings narrative. With mixed signals around Kyndryl Holdings, it makes sense to move quickly and review the full risk and reward picture for yourself. To see both sides set out clearly, start with these 2 key rewards and 3 important warning signs . If you stop with Kyndryl Holdings, you risk missing other stocks that better match your goals, risk comfort and income needs across the market. Target potential growth stories early by scanning carefully selected smaller companies using the 21 elite penny stocks with strong financials . Focus on quality at a reasonable price by reviewing companies highlighted in the 54 high quality undervalued stocks . Strengthen your income stream by checking out businesses featured in the 11 dividend fortresses . This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include KD . Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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